Pennsylvania BFR Orders Reassessment of Taxpayers Sales, Use Tax

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision ordering the Department of Revenue (DOR) to reassess taxpayer’s sales and use tax determination. Taxpayer filed a petition against DOR’s assessment of sales and use tax plus penalties for several transactions during the period Jan. 1, 2018, to Dec. 31, 2020. The Board agreed that some transactions fell outside the statutory assessment period, the Department incorrectly taxed employee costs for building cleaning services, and penalties should be abated given taxpayer’s decreased liability and good faith efforts. However, the Board upheld tax on out-of-state software use where taxpayer failed to ...